NY State Senate Bill 2021-S7609

Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to banks
Dec 17, 2021	referred to rules

co-Sponsors

2021-S7609 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §13, Bank L
Versions Introduced in 2023-2024 Legislative Session:: S5401

2021-S7609 (ACTIVE) - Summary

Prohibits a state chartered banking institution from providing financing to a landlord who has engaged in certain bad faith acts.

2021-S7609 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7609

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the banking law, in relation to prohibiting bank invest-
ments in bad faith landlords

 
PURPOSE::

To prevent landlords convicted of fraud or violating laws from receiving
financing from state-chartered banks.

 
SUMMARY OF PROVISIONS::

  Section  one prevents state chartered banking institution from provid-
ing financing or investing in any person or business entity  engaged  in
leasing  residential  real  estate  if  the  person  or  entity has been
convicted of illegal conduct against a tenant,  convicted  of  financial
fraud  or embezzlement, or has entered into certain consent decrees with
the office of the attorney general.

  Section two establishes the effective date.


 
JUSTIFICATION::

When a landlord is found time and again to  disregard  housing  law  and
target  tenants  with  harassment,  it is reasonable to expect financial
institutions to analyze this record when considering  future  financing.
Certain  bad actors have been convicted of illegal harassment, coercion,
or fraud against tenants, only to turn around and get  financing  for  a
new building to exploit.

Perhaps  the  most  notorious  example of this phenomenon has been Steve
Croman, the New York City landlord who in 2017 was sentenced to one year
of jail time and ordered to pay $8 million in restitution to tenants for
his crimes. A consent decree required that Croman place over 100 of  his
properties  under new independent management, with a monitor in place to
oversee compliance. However, after his stint in  jail,  Croman  returned
only  to  go on a buying spree of new buildings.  Despite his past legal
troubles, tenants report a  landlord  that  continues  old  patterns  of
harassment and neglect.

This  bill  would help address the lack of accountability by prohibiting
State chartered banks from issuing loans to  landlords  that  have  been
convicted  of  violating housing laws. Bad actors that act with impunity
should not be given the chance to continue victimizing New Yorkers.

 
LEGISLATIVE HISTORY::

New bill.

 
FISCAL IMPLICATIONS::

None.

 
EFFECTIVE DATE::

This act shall take effect immediately.

2021-S7609 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7609
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             December 17, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law, in relation to prohibiting bank invest-
   ments in bad faith landlords
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  banking law is amended by adding a new section 13 to
 read as follows:
   § 13. INVESTMENTS IN BAD FAITH LANDLORDS BY  STATE  CHARTERED  BANKING
 INSTITUTIONS.  1.  NO  STATE CHARTERED BANKING INSTITUTION SHALL PROVIDE
 FINANCING FOR OR INVEST IN THE STOCKS, SECURITIES, OR OTHER  OBLIGATIONS
 OF  ANY PERSON, INSTITUTION, COMPANY, OR SUBSIDIARY ENGAGED IN THE BUSI-
 NESS OF LEASING RESIDENTIAL REAL ESTATE THAT HAS:
   (A) BEEN CONVICTED OF ENGAGING IN ILLEGAL CONDUCT  AGAINST  A  TENANT,
 INCLUDING (I) HARASSMENT, (II) COERCION, OR (III) FRAUD;
   (B)  BEEN  CONVICTED  OF  FRAUDULENT  REFINANCING OF LOANS, TAX FRAUD,
 EMBEZZLEMENT, OR OTHER FRAUD OR THEFT RELATED TO  FINANCIAL  MANAGEMENT;
 OR
   (C)  ENTERED  INTO  A  CONSENT  DECREE WITH THE OFFICE OF THE ATTORNEY
 GENERAL IN SETTLEMENT OF A LAWSUIT REGARDING UNFAIR OR  DECEPTIVE  PRAC-
 TICES  AGAINST A TENANT, THAT (I) ESTABLISHES A TENANT RESTITUTION FUND,
 PURSUANT TO SUBDIVISION TWELVE OF SECTION SIXTY-THREE OF  THE  EXECUTIVE
 LAW,  WITH  TOTAL  CONTRIBUTIONS  IN EXCESS OF ONE MILLION DOLLARS, (II)
 RESULTS IN AN INDEPENDENT  PROPERTY  MANAGEMENT  COMPANY  ACQUIRING  THE
 PRIMARY  MANAGEMENT  RESPONSIBILITIES OF ANY OF THE RESPONDENT'S PROPER-
 TIES, OR (III) REQUIRES A  MONITOR  TO  ENGAGE  IN  THE  REVIEW  OF  THE
 RESPONDENT'S  COMPLIANCE  WITH  THE  POLICIES  AND  PROVISIONS OF SUCH A
 DECREE.
   2. FOR PURPOSES OF THIS SECTION:
   (A) "STATE CHARTERED BANKING INSTITUTION" SHALL HAVE THE SAME  MEANING
 AS DEFINED IN SUBDIVISION ONE OF SECTION TWELVE-A OF THIS ARTICLE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13440-01-1

 S. 7609                             2
 
   (B) "CONSENT DECREE" SHALL MEAN AN AGREEMENT BETWEEN THE PARTIES IN AN
 ACTION TO RESOLVE THE ACTION, WHICH IS ENTERED, APPROVED, AND ORDERED BY
 A COURT;
   (C)  "TENANT RESTITUTION FUND" SHALL MEAN A FUND, TRUST, OR ACCOUNT IN
 WHICH MONEY IS DEPOSITED FOR THE  BENEFIT  OF  POTENTIAL  CLAIMANTS  WHO
 QUALIFY FOR RESTITUTIONS UNDER THE COURT ACTION THAT LED TO THE CREATION
 OF  THE  TENANT  RESTITUTION FUND AND THE OFFICE OF THE ATTORNEY GENERAL
 SHALL HAVE OVERSIGHT OF THE FUND AND BE RESPONSIBLE FOR MAKING  DISTRIB-
 UTIONS TO CLAIMANTS;
   (D)  "PROPERTY  MANAGEMENT  COMPANY"  SHALL MEAN A COMPANY THAT IS NOT
 OWNED BY A PARTY TO THE CONSENT DECREE THAT IS QUALIFIED TO  MANAGE  THE
 PROPERTIES THAT ARE SUBJECT TO A CONSENT DECREE; AND
   (E)  "MONITOR"  SHALL  MEAN AN INDIVIDUAL WHO HAS BEEN APPROVED BY THE
 OFFICE OF THE ATTORNEY GENERAL TO REVIEW AND REPORT ON WHETHER THE OTHER
 PARTY TO THE CONSENT  DECREE  AND/OR  THE  PROPERTY  MANAGEMENT  COMPANY
 COMPLY WITH THE POLICIES AND PROVISIONS OF THE CONSENT DECREE.
   §  2.  This  act  shall take effect immediately and shall apply to all
 contracts entered into, renewed, modified or amended on  or  after  such
 effective date.

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Senate Bill S7609

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

co-Sponsors

2021-S7609 (ACTIVE) - Details

2021-S7609 (ACTIVE) - Summary

2021-S7609 (ACTIVE) - Sponsor Memo

2021-S7609 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7609

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Sponsored By

Brad Hoylman-Sigal

Archive: Last Bill Status - In Senate Committee Banks Committee

co-Sponsors

Robert Jackson

2021-S7609 (ACTIVE) - Details

2021-S7609 (ACTIVE) - Summary

2021-S7609 (ACTIVE) - Sponsor Memo

2021-S7609 (ACTIVE) - Bill Text download pdf

Comments